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Aug. 11, 2011 /PRNewswire/ - Equal Energy ("Equal", "the Company") (TSX: EQU): (NYSE: EQU) announces that it has made the necessary filings, and received the necessary approvals, to make a normal course issuer bid for its 8.25% convertible unsecured subordinated debentures (the "Debentures") through the facilities of the Toronto Stock Exchange (the "TSX") commencing
August 15, 2011 and ending
June 30, 2012, or on such earlier date as Equal may complete its maximum allowable purchases under the bid as described below.
During the previous normal course issuer bid ended on
August 5, 2011, Equal acquired
$376,000 of the 8.25% Debentures at a weighted average price of
The Debentures have a face value of
$1,000 per Debenture, a maturity date of
June 30, 2012 and are convertible into common shares of Equal at a price of
$20.40 per common share. The Debentures pay interest semi-annually on
June 30 and
Equal currently has
$39,272,000 principal amount of the Debentures outstanding. A total of
$3,927,000 principal amount of the Debentures may be acquired under the normal course issuer bid, representing 10% of the "public float". Equal's daily purchase restriction under the bid is
$8,000 principal amount of the Debentures, subject to "block purchase" exemptions permitted by the rules of the TSX. Equal will acquire the Debentures under the bid at the market price at the time of purchase, with the acquired Debentures being cancelled.
In the opinion of the board of directors of Equal, acquiring and cancelling the Debentures will reduce the borrowing costs for Equal therefore, acquiring the Debentures under a normal course issuer bid is an expense prudently incurred by Equal to increase shareholder value.